The European Parliament’s approval of the Markets in Crypto Assets (MiCA) regulation marks a new era for the crypto industry, especially in Europe. Philipp Pieper, co-founder of Swarm, a regulated DeFi platform and member of Germany’s Digital Finance Forum has hailed the move as a major milestone.
“A fresh start for crypto has been established and, surprisingly, Europe has emerged as the leading innovator in the sector”, Pieper said in a press release. The law provides clear and unambiguous guidelines for crypto companies in the European market, granting more security to investors and protecting them from potentially fraudulent practices.
Pieper believes that the MiCA regulation should be seen as an opportunity and not a burden, as it sets Europe as a world leader in blockchain technology. On the other hand, the US is still struggling with regulatory uncertainty, hampering the growth of the industry.
Regulation: A Necessary Part of Crypto’s Growth
The implementation of MiCA is likely to cause some discomfort, as it is part of the evolutionary process for crypto. Pieper believes that the fast-paced changes in the industry make regulation a necessary part of its growth.
“Though some parts of crypto have an anti-government stance, regulations are now unavoidable and it is not feasible to resist them”, he commented. “We know of approximately 300 organisations that are affected by this, and they must register or face the risk of having to pause their operations.”
The US Stands Still
Europe is moving forward with the regulation of crypto, while the US remains behind. UK’s Minister recently announced that the country could have its crypto rules ready within one year. On the other hand, SEC Chair Gary Gensler’s responses at a Congressional hearing this week have been heavily criticized for their lack of clarity.
The SEC has argued that exchanges cannot be asked to “come in and register” if there are no regulations in place. Coinbase CEO Brian Armstrong has expressed his frustration at the situation, stating that the US-based exchange could move its base if necessary. It seems that the American regulatory environment is not changing anytime soon.